Appen Limited (ASX:APX) Reports 16% Revenue Growth and Outlines 2025 Strategy
Financial Performance
Appen Limited reported a 16% revenue growth in 2024, excluding Google, and returned to profitability with $3.5 million underlying EBITDA before foreign exchange effects. Operating expenses were reduced by 26% compared to 2023.
Operational Achievements
The company’s China division grew by 71% in 2024, reflecting its dominant market position. Additionally, generative AI contributed 28% of H2 FY24 revenue, showcasing the company’s ability to pivot to high-demand areas within the AI market.
Strategic Priorities
Looking ahead to 2025, Appen provided guidance expecting revenue between $235 million and $260 million and positive underlying EBITDA. The strategy focuses on enhancing data quality, speed, and diversification, supported by strengthened sales, technology innovation, and operational efficiencies.
Executive Comments
CEO Ryan Kolln stated, “Looking forward, there remains a significant opportunity for Appen to capture material value from the AI data market. We are only at the beginning of the impact of AI, and the role we play in creating high quality data remains a critical ingredient.”
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Appen. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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